UNIT 1: January 7th, 2016

Production Possibility Graphs (PPG)- 

• shows the alternative ways to use an economy's resources.
• Production Possibility Frontier (PPF) & Productions Possibility Curve (PPC)

• Efficiency- using resources wise to maximize production of goods and services.
• Productive Efficiency- products produced in the least costly way; any point ON the PPC.

Underutilization- using fewer resources than an economy is capable of using.

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